Does the Boulder Designs franchise agreement allow for any claims, representations, warranties, or guarantees regarding the actual or potential financial performance of a Boulder Designs franchise, other than those explicitly stated in Item 19 of the FDD?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that no claims,
representations, warranties, or guarantees, express or implied, regarding actual or potential earnings, sales, profits, or success of your BOULDER DESIGNS franchise have been made to the Franchisee other than as set forth in Item 19 of the FDD.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that no claims, representations, warranties, or guarantees regarding the actual or potential financial performance of a Boulder Designs franchise have been made to the franchisee, other than those set forth in Item 19 of the FDD. This means that a prospective franchisee should not rely on any verbal or written promises of financial success that are not included in Item 19. Item 19 provides specific financial performance representations that Boulder Designs is willing to stand behind.
This provision aims to protect both the franchisee and Boulder Designs. By limiting financial representations to Item 19, Boulder Designs avoids potential liability for overly optimistic or unsubstantiated claims made by its representatives. Simultaneously, it protects the franchisee by ensuring that any financial projections they rely on have been vetted and approved by Boulder Designs. This is a common practice in franchising, as it provides transparency and manages expectations regarding potential earnings.
It is crucial for a prospective Boulder Designs franchisee to carefully review Item 19 of the FDD and understand the scope and limitations of any financial performance representations made. They should also conduct their own independent research and due diligence, including consulting with financial advisors, to assess the potential profitability of a Boulder Designs franchise in their specific market. Relying solely on information outside of Item 19 carries significant risk, as Boulder Designs is not bound by any such claims.